Category Archives: Cooperatives

Raising the Bar in 2018

“There are those that look at things the way they are, and ask why? I dream of things that never were, and ask why not?” -RFK

I’ve loved that quote for a long time. It gets me charged up every time I read the words. But I’m no change-the-world kind of visionary. All I do is help people and groups connect dots, to fix stuff, and to make things happen. I try to create a space where people can be their best. When I do, I get that same jolt of energy as I do when I drink in Kennedy’s words. I think it comes from the process of creating anything that wasn’t there before, even if it’s a basic as setting up a system or helping someone see how their lives and work can be a little easier or more fulfilling. I think it’s about making a difference.

But I’m frustrated. I’ve seen great community association leadership and management. I’ve been privileged to been a part of it from time to time. It’s awesome. And it doesn’t happen nearly often enough. Every time I see people accepting mediocrity (or worse), giving up, missing the point, or air balling opportunities to turn things around, it annoys me. And I really don’t like reading a piece on social media, which may or may not tell the whole story, but seems to cite examples of board members or managers violating the fundamentals of fiduciary duty, good business or just common sense. Especially when the writer broad-brushes all community association, boards, and managers as inherently evil. As a positive, solutions-based guy, this negativity is tough to take. Especially when I’ve come to appreciate the dedicated women and men who I’ve had the privilege to know, to learn from, and to serve with in this space as they consistently do the right thing for all the right reasons.
The truth is, due to a plethora of factors, the cards can be stacked against us on the whole. My signature theme and talk for 2017 was “Raising the Bar.” It started as kind of a rant. To provide context in presentations, I began with a Readers Digest version of the history of community associations and the management industry that supports them. When you look at how we got here, it’s not at all surprising where we are. And when I see industry trends that fail to address the fundamental issues of commoditization a lack of customer service culture, I’m not so happy with where we are going in the macro. It doesn’t have to be this way.

The potential for great things is right there in front of us. Some are dedicated to excellence. I’m grateful to have gotten to know and work with so many of them. THEY need to be driving the future. And here’s the thing – despite the negativity you can read on line and in the press, statistics seem to indicate homeowners enjoy living in their community associations. Just imagine how thrilled they’d be if excellence was the norm!

And that’s why I’m frustrated. So much opportunity for career and volunteer leadership experience satisfaction, for wildly successful communities, for outstanding service….yet in general I see “good enough” mentality, short term thinking, price first (frequently price only!) thinking, and too much fluff, smoke and mirrors. It calls to mind Hyrum Smith’s definition of pain (the Franklin Covey day planner guy) – “Pain is the distance between where you and are where you want to be.” I think that to a large extent, our whole industry is in pain and those in it frequently doesn’t realize it. And when they do, they tend to assume it’s the norm. Dysfunction junction.

But Tom, you said your business social media would be a snark-free zone, focused on solutions and positive messages…

Yes…yes I did. Here it comes…

One way or another in 2018 I’m torquing up my efforts to make a dent in all of this. I am going to continue to act on the beliefs I’ve come to acquire about leadership, life, and management over the last 3 decades of service to community associations. I will be actively looking for ways to implement and promote the best practices embodied in them and do my best to have a bigger impact. So here are some of the things I believe, in no particular order. Some apply to managers, some apply to volunteer leaders, some apply to both. I know I’m violating the blog brevity rule by including so many of these…oh well. Here goes.

1. We need to share success stories, start to take back the conversation and elevate the dialogue.

2. Yes, there will be some bad actors and they will deserve the bad press they get. It’s easy to be a critic. Let’s do better. If we share a horror story, share the solution and the lessons learned.

3. Professional designations are only the beginning. Technical proficiency is a baseline. It’s what you do with it that really counts. Learn to be effective, to understand and teach the principles behind the fundamentals. Think, live and act as leaders, not administrative functionaries.

4. I think the old axiom is correct – managers focus on doing things right while leaders focus on doing the right thing. But there’s a caveat. The best managers are leaders first. At the same time, they recognize what is entrusted to them and make sure they take care of other people’s stuff in an exemplary way.

5. Community members deserve our best work.

6. We need to respect people for their humanity, even if their words and actions do not seem to be worthy of respect.

7. We need to agree to disagree in an agreeable way.

8. Cost is more important than price. What you pay today is less relevant than what that decision costs you over time.

9. Politics is not leadership. Practice leadership first and earn trust.

10. Until we communicate in a meaningful way from the listener’s/reader’s perspective and NOT OURS, we are just part of the static in a crowded space. “But I sent an email”, “It was in the newsletter”, “If people want to know what’s going on, they need to attend the board meetings” and one of my favorites, “They should know the rules” just don’t cut it any more. Sorry. Life is harder now. (Managers, refer back to #2, but this applies to board members, too). Change the message, change the mode, change the tenor, change the channel of communication. Go deeper. It doesn’t matter what you said. What, if anything, was heard?

11. We need to stop being “No People.” Find yes! Nobody wants to hear what you can’t do. Figure out how to be a resource to help people get what they want. It doesn’t matter if it’s not in your position description. PDs should be the baseline, not the goal.

12. We need to believe in, and be great at, customer service. Not for its own sake. Do it because it’s part of who we are. If you are not about that, it’s OK. But if that’s the case it‘s time to find another career or volunteer effort.

13. In the end, even great management cannot overcome lousy leadership.

14. Trust is everything. It takes a while to earn and one misguided sentence to lose it. Remember what being a fiduciary means and live up to the inherent and underlying principles, not just the legal technicalities. We take care of other people’s stuff. That’s a trust. That’s an honor. That’s huge.

15. Every community association is different. Cookie-cutter approaches and metrics are fatally flawed. Go deeper.

16. We are so much more than asset managers. We have to go beyond sticks and bricks to serve our clients well. Therefore, we are not “property managers,” we are “community managers” or “community association managers.”

17. Managers & management companies: It’s about the client, not the company. Board members: It’s about the members, not the board.

18. The best way to spend less time putting out fires and missing opportunities for proficiency, much less excellence, is to invest the time to prepare and execute systems and processes. Is “hair on fire” your S.O.P.? Here’s your sign (thanks Mr. Engvall).

19. Management companies need to prove value if they are ever to get out of the commoditization trap. Stop the dollars per door nonsense (see #15).

20. Every organization has shared values and culture. Even community associations! Make it intentional and you’ll own it. Leave it to chance and it will own you.

21. People in the community always have more in common than what divides them. Sometimes it’s just hiding. Don’t let divisions dominate the dialogue. Find those things in common and build from them.

22. Remember, in other areas of your life, you are a customer. How do you like to be treated? Do that when you are serving others. (Isn’t it funny how easy it is to forget the golden rule??)

23. We need to grow our emotional intelligence, not just our IQ. The goal of acquiring knowledge needs to be wisdom.

24. You are what you eat, physically, mentally and emotionally. Be intentional about feeding your heart and head. Leave it up to chance and you’ll likely be negative and bitter, accidentally setting up vicious behavior cycles with the people around you.

25. We silly humans tend to make assumption about motive, put everything (and everybody) in black and white boxes, respond negatively to negativity, and value ego over humility. That’s what kills all human relationships, not just those related to community association. Please stop it.

26. Human resources are investments. This need to be part of every organization’s DNA. Giving lip service to “people first” doesn’t count if people are ultimately thought of as expenses, or worse, commodities. A dedication to learning needs to be part of that DNA. Most organizations don’t even invest in training, must less learning (yeah, there’s a big difference). Sorry, but that’s as dumb as a large manufacturing company going cheap on R&D. Short term profit, long term decay. Invest in people, build and maintain a culture of learning (see #20).

27. Contrary to what burned out managers and politically motivated board members might say, “CYA” is not the first goal of business. Covering your butt is the byproduct of doing good work.

28. Governing documents, rules, policies and processes exist for people, not the other way around. Remember that every time a rule or policy is drafted, and every time a covenants violation or collections notice is sent out. Yeah, you might have to add some scary language if required by law. Still, find a way to make it both human and humane.

29. Outstanding customer service is not only noble, it’s rewarding. Somebody a whole lot wiser than me said “There is more happiness in giving than receiving.”

And finally, I believe we all need to remember that every time we, as community association leaders, managers, or other professionals that serve community association members, choose to carry out our responsibilities in an excellent way, we absolutely have a positive impact on the quality of life and ownership experience of every member of the community. We are the only ones that can take that reality away from us. Please don’t let that happen! Every situation and interaction is an opportunity to make a difference. Think about it – you may be the only bright spot in someone’s day!

No, I’m not blowing Pollyanna smoke or condo fairy dust up your butt. Community associations are growing faster than the industry’s current ability to address its challenges. On the whole, this thing is too broken to get it all fixed by the end of my career. So what? Every single one of us can make a difference one best practice, one transaction, one conversation, one client, one board member, one manager, one success at a time. So let’s not ask why. Let’s ask, “Why not?” What do you say? Let’s do this thing!

You’re Not the Boss of Me!

Laws, community association governing documents and policies are designed to help boards of directors identify their roles and responsibilities. They provide a framework of expectation for community members. And they can be immensely useful in dealing with inappropriate and ill-advised actions. But they are not enough.

Ironically, these documents by their nature can actually make it more difficult to motivate some to do the right thing. They outline behaviors – “what” and “how,” sometimes in excruciating detail. A fundamental challenge is that the documents themselves rarely address the underlying principles as to why they exist in an effective way – the “Why.”

not the boss of meIt is human nature to bristle at being told what to do, especially when we don’t see the purpose. So, while it may be technically proficient to cite the law, governing documents, policies, and case law in addressing issues, the most effective boards, managers, and lawyers raise the bar. They help their clients and members appreciate the Why. This provides context and can make requirements easier to swallow. When common benefit is accentuated, it may even be motivational.

Those of us who serve community associations must recognize that when we provide direction and recommendation, even when fully supported by documentation, the communication may be received on an emotional level as an ego-based message. If so, this is likely to result in an ego-based reaction. The key is to raise the level of communication from ego to principle. The message is far more palatable and effective when it is properly placed in the context of values. Rules don’t reach hearts, but principles can. Even though we have to work in the trees of technicality and details, we need to help our clients and community members see the forest if we are to serve them at the highest level.

THE TAKEAWAYS …
* Communicate the Why whenever possible.
* Seek to identify shared values, allow discussion about specific behaviors to be in the context of those values.
* Beware the perception of ego-based communication; seek to raise the level of all communications to principle-based.

Vision Toffler

Long Range Planning for Community Associations – Getting Down to Business!

In Part 2 of this series, I outlined the basic planning steps condominiums, HOAs, and cooperatives use to create a long range plan. You’ve assembled the team to take on the project (also covered in Part 2) and you are ready to roll. Now what?

Five Steps to a Great Plan!

 

There are different approaches to complete each step, considering the group and available resources. Here are a few success tips to think about as you tackle each step.

Step 1: Assess current conditions
• A “SWOT” analysis is a great tool. List the strengths and weaknesses inside the organization, and the opportunities and threats that impact, or may impact, from outside the community. Click here for a helpful guide to SWOT analysis from the Community Tool Box.
• Collect data from as many sources as possible; reserve studies, inspection reports, audits, governing documents, welcome packages, rules & regulations, newsletters, website, committee members, management and staff.
• Listen to your members. Use tools like surveys and town hall meetings to find out what they use, what they like, and what they want.
• See things as they really are with absolute, brutal honesty. No theoreticals, just facts. (Hint: A fact can sometimes be that there are widely differing opinions on a subject. So don’t argue about who’s right, just record the results of the fact-finding). This is where having diversity in the working group is extremely helpful. If your association is professionally managed, listen to the management team. The more perspectives the better.

Step 2: Identify the core purpose of the association
• Value Statements, Vision Statements, and Mission Statements are all great documents. Exactly which is created as a result of this step isn’t crucial. What’s most important is that document or documents, in whatever form they may take, accurately represent what the community is really about and where it wants to go.
• Oh please…don’t do the corporate thing – put pretty words on a plaque on the wall that nobody cares about and think you’ve nailed it. Unless the work product from this step creates a basis for decision making, it’s meaningless. I’ve read way too many mission statements that reek of groupspeak and left me wanting to rip it from the wall and fling it in to the fire. Make it real, even if it’s a little ugly. You can tweak it later.
• Real world tip: Some groups have a tough time enumerating values, vision and mission. Don’t worry. If you get stuck, feel free to skip ahead to Step 3, then come back. If you tell me what you want to do, if I listen carefully enough I can hear the values, vision and mission behind the plans. So can you.

Step 3: Set goals to work towards achieving that purpose
• Intense brainstorming happens here. There are no bad ideas. Disallow brainstorming creativity killers like “We tried that and it didn’t work,” and “That’s a dumb idea.” Culling and prioritization happen after brainstorming.
• Clarify results into “SMART” goals – specific, measurable, achievable, realistic, and timely. That being said, achievable and realistic does NOT mean easy. Progress is rarely easy. Timely refers to each goal having a target date for completion. This is where prioritization comes into play.
• If a goal does not support the mission, either the goal should be dumped or you have identified an adjustment to the mission.

Step 4: Decide what practical steps, or “objectives,” will be necessary to reach the goals
• Reverse engineer the process. Be clear on each goal and work backwards to identify the deliverables required to achieve the goal.
• Sometimes you will find a goal needs revisiting after this step. Adjust as needed.
• After identifying the work needed to achieve your goals, you might realize you need to adjust the target dates for completion. That will make for “smarter” goals (more achievable, realistic, and timely).

Step 5: Establish the plan to regularly review progress and update the plan as needed
• This is where great plans fail. Unless there is follow through and analysis, your initial efforts are wasted.
• Review the plan each year. Include community feedback in the analysis.
• Identify the objectives to be accomplished each year and plug them into the association’s master annual calendar so they can be tracked.
• Regularly communicate plans and progress. Hold yourself accountable. Don’t be afraid of failure; learn from it. Communicate some more. Support and momentum will increase.

What topics should your association include in the analysis and plan? The answer is…anything and everything.  That’s what I will cover in Part 4.  Stay tuned!

RESOURCES

• “Best Practices Report #3 – Strategic Planning” – Foundation for Community Association Research
• Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening Organizational Achievement by John M. Bryston
• Creating Your Strategic Plan: A Workbook for Public and Nonprofit Organizations by John M. Bryston & Farnum K. Alston

How Community Associations Plan to Succeed

In Part 1 of this series, I explored the reasons why condominium associations, homeowner associations, and cooperatives by and large fail to engage in meaningful long range planning. If a failure to plan is a plan to fail, how can community associations plan to succeed?

BREAKING IT DOWN

Long range planning can be defined as the establishment of a strategy to successfully navigate the foreseeable future. The basic planning process will involve 5 key steps.

Step 1: Assess current conditions
Step 2: Identify the core purpose of the association
Step 3: Set goals to work towards that purpose
Step 4: Decide what practical steps (“objectives”) will be necessary to reach the goals
Step 5: Establish the plan to regularly review progress and update the plan as needed

KEYS TO SUCCESS

Thoughtfully selecting the team to take on this project is the first key to success. Each association has to take into consideration the availability of, and commitment to, human and financial resources. Getting a broad range of input is vital. An ad hoc committee including community members can be extremely valuable, especially since the final plan will need community support to have lasting impact. Leaders who allow the planning group to drive the process and who allow the collected data to tell the story are likely to garner support and succeed. Those who impose preconceived notions about the end result upon the group will destroy both creativity and the integrity of the final product.

Bill Selfridge, the chairman of an HOA ad hoc planning committee, shared why his Association took great care to bring diversity to his group,

“Our community has many members who have expertise and interest in different areas. When we established our working group, we were able to assign specific focus areas to people who expressed an interest in and a willingness to be the coordinator those areas. We identified 9 areas; everything from governance to communications, to clubhouse administration. We endeavored to take into account the diversity of approaches and ideas and opinions. That sometimes translated into very spirited, but extremely valuable dialogue, resulting in a much sounder plan.”

The person designated to lead planning sessions must be objective, patient, focused, and trusted. Bill’s HOA decided to engage me as an outside facilitator. He explains,

“We realized that with all the various viewpoints of the work group participants that it was important to provide for objectivity and subject matter expertise through a proven and qualified facilitator to help us maintain focus and work through the rough spots. We also had to agree that the meetings were his show. We found a facilitator who had the industry experience, the countenance, and the people skills that the group could respect. It made a big difference.

This is Part 2 of a 6 part series. In Part 3, I will dive into each of the 5 basic planning steps help you visualize how your condo, HOA, or coop can actually make this happen. Stay tuned!